BIS committee slams government productivity plan and weak ministerial engagement?
A Department for Business, Innovation & Skills (BIS) select committee has lambasted the government’s June 2015 productivity plan arguing that the document represents more of an assortment oflargely existing policies collected together in one place than anew plan for ambitious productivity growth.
A new report by the committee highlights the severity of the UK’s low productivity relative to the countries Britain competes with economically as well as the sluggish post-recession recovery in output per worker.
The document also claims that ministerial engagement in the implementation of the productivity plan is far too weak? and disparages the lack of clear goals included in the plan.
Members of the committee which is chaired by Labour MP for Hartlepool Iain Wright but also includes Conservatives and one independent politician also expressed concern about particular government policies on education, immigration and research and development, and emphasised the need for action on improving the funding landscape for small firms.
The report’s authors wrote: Thechanging nature of the economy means that the new generationof entrepreneurs are still struggling with appropriate access to finance. We have heard that investors still struggle to understand thedevelopment of new business models and intangible assets. This meansthat too little capital is provided, often at too higha price. The UK is at the centre of global financial markets and is well placed to ensure thatthis failure is addressed.
we are concerned that competing financial markets around the world have the potential to steal themarch on us with the subsequent detrimental impact upon thiscountry’s growth and productivity potential.The government should providemore clarity than is in its Productivity Plan as tohow it plans to address this market failure helping tomatch growth funding to firms with high growth and productivitypotential.
Commentators have responded by emphasising the need for business leaders themselves to act on employee productivity. Tom Castley, the EMEA vice president of performance management software provider Xactly, said: This isnt just an issue for the government; every single UK company will benefit by improving employee motivation and output.
Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics as well as running a tutoring company.
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